Because I'm an occasional rock 'n' roll lawyer,
aspiring pop idols sometimes seek me out. Usually the deals
they're offered are awful. Yet one desperate singer showed me a
contract that promised to put him not in the "surf music"
but the "serf music" genre--the terms would have
made a feudal overlord blush. I was frank with my prospective
client: "It is mathematically impossible for you to make one
nickel on this deal. Why bother?"

"But you don't understand," he pleaded. "I
just gotta get a record deal!"

A speaker and attorney in Los Angeles, Marc Diener is the
author of Deal Power: 6 Foolproof Steps to Making Deals of Any
Size(Owl Books/henry Holt). you can reach him at MarcDiener@aol.com

Know Thyself

Superior dealmakers know exactly what they want and why. Start
every deal with a little soul-searching. Ask yourself: "Why am
I doing this?" And don't assume you know the answer. If
you're honest, you may be surprised. Psychologist Abraham
Maslow theorized a hierarchy of human needs starting with the
basics like air, water and food; through sex, safety, love and
belonging; to the higher ones like truth, justice, beauty and
self-sufficiency. Let's adapt this idea to dealmaking.

Money is a universal need. Deal terms such as time, service or
any kind of tangible or intangible property usually convert to
plain dollars and cents. That much is obvious. But not all business
needs are based on money. For example, a successful venture
capitalist may harvest his company because he wants to spend more
time with his family. An executive may quit the company that
slighted her to launch a competing one. A retiring owner may not
tolerate being put out to pasture and prefer to stay on as a
part-time consultant.

Satisfying your emotional and psychological needs can be even
more important than satisfying your financial ones. By being candid
with yourself, you may uncover your real motives, crystalize your
goals and push forward vigorously. Or you may reject a deal and
find simpler ways to satisfy your true needs. After all,
there's no point wasting time and energy on a deal that can
never give you what you really want.

Your Wish List

Great dealmakers are also great list-makers. Putting your list
in writing is the second step to effective goal-setting. Start by
identifying all the things you want and all the things you
don't. Go into detail. Then group and prioritize these goals
into what you must have, what you'd really like to have and
what you can take or leave. Make this exercise even more effective
by getting someone to act as a sounding board and listen to your
ideas. Or consult a professional, such as an attorney, or other
resources (books, magazines or the Internet, for example) to find
out what each side typically gets in a deal like yours.

I know this may seem like undistinguished advice, and the
exercise so simple-minded you'll want to skip it. Don't. It
is remarkably powerful. At its most basic, your checklist will keep
you from missing something, from forgetting to insist on an
important deal term or concession. It also articulates your bottom
line--the minimum you'll accept before walking away. But even
more important, having clear, specific goals gives you the focus,
energy and self-confidence to negotiate on your terms. In
business, attitude can be everything. And the strength that comes
from knowing exactly what you want translates to true power at the
bargaining table.

A speaker and attorney in Los Angeles, Marc Diener is the
author of Deal Power: 6 Foolproof Steps to Making Deals of Any
Size (Owl Books/Henry Holt). You can reach him at MarcDiener@aol.com

Web Site

Business ethics

By Robert McGarvey

Business ethics and dealmaking don't have to be like oil and
water. If being an ethical member of the community is one of your
priorities, feast on some substantial food for thought in the
business ethics section (http://www.us.kpmg.com/ethics)
of KPMG LLP's Web site, where the goodies include a white paper
on avoiding the myths about business ethics and another on the
how-tos of measuring business ethics. None of this is light
reading, but it's indispensable for any entrepreneur who's
bent not on making the quick deal but on building a company of
lasting import.